Question 1

Outsourcing has caused complications in many states where jobs have been lost to overseas companies.

Accepted Answer

A) True 
 B)False

Question 2

Aaron recently opened Twangy Tunes, a small recording studio in Nashville, TN. He probably could have set up shop in several major cities, but Nashville offered him the two most important factors, according to Peter Drucker, that would enhance the creation of wealth: labor and political freedom.

Accepted Answer

A) True 
 B)False

Question 3

The new era of business is likely to be dominated by the

Accepted Answer

A)  service sector. 
B)  information-based sector. 
C)  manufacturing sector. 
D)  continued decline in productivity. 
A)  service sector. 
B)  information-based sector. 
C)  manufacturing sector. 
D)  continued decline in productivity.

Question 4

Which of the following is the most accurate statement about the impact of business on society?

Accepted Answer

A)  When businesses earn a profit for their owners, they usually do so at the expense of the rest of society, which proves it is never a win-win situation. 
B)  While businesses often improve the standard of living within a society, they can do little to improve the quality of life. 
C)  Businesses often improve the quality of life, but can do little to improve the standard of living of most people due to inflation. 
D)  Businesses can have a positive impact on both the standard of living and the quality of life within a society. 
A)  When businesses earn a profit for their owners, they usually do so at the expense of the rest of society, which proves it is never a win-win situation. 
B)  While businesses often improve the standard of living within a society, they can do little to improve the quality of life. 
C)  Businesses often improve the quality of life, but can do little to improve the standard of living of most people due to inflation. 
D)  Businesses can have a positive impact on both the standard of living and the quality of life within a society.

Question 5

Which of the following is the best example of a business whose goal is to earn a profit?

Accepted Answer

A)  A community college 
B)  The American Red Cross 
C)  Boy Scouts of America 
D)  Apple 
A)  A community college 
B)  The American Red Cross 
C)  Boy Scouts of America 
D)  Apple

Question 6

Demographic trends suggest that businesses will benefit from offering flexible work schedules, elder care, and child care to help employees balance the demands of job and family.

Accepted Answer

A) True 
 B)False

Question 7

Producing a high-quality product will ensure success in the competitive environment.

Accepted Answer

A) True 
 B)False

Question 8

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

Accepted Answer

A) True 
 B)False

Question 9

The statistical study of human population to learn its size, density, and characteristics is called

Accepted Answer

A)  psychographics. 
B)  econometrics. 
C)  demographics. 
D)  geometrics. 
A)  psychographics. 
B)  econometrics. 
C)  demographics. 
D)  geometrics.

Question 10

To implement a policy of empowerment, the organization will restructure so that:

Accepted Answer

A)  managers have more responsibility and employees learn to follow directions. 
B)  employees assume more responsibility. 
C)  workers agree to work overtime without extra pay. 
D)  an entire level of management is removed from the organization. 
A)  managers have more responsibility and employees learn to follow directions. 
B)  employees assume more responsibility. 
C)  workers agree to work overtime without extra pay. 
D)  an entire level of management is removed from the organization.

Question 11

According to the box, "Services Expand the Circular Economy," technology is helping turn products into services by

Accepted Answer

A)  restricting what customers can and cannot buy for personal use. 
B)  producing items that are designed to reach obsolescence quickly. 
C)  offering new ways to access items like movies or music and by adding sensors to allow companies to develop new business models. 
D)  developing more disposable items. 
A)  restricting what customers can and cannot buy for personal use. 
B)  producing items that are designed to reach obsolescence quickly. 
C)  offering new ways to access items like movies or music and by adding sensors to allow companies to develop new business models. 
D)  developing more disposable items.

Question 12

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

Accepted Answer

A) True 
 B)False

Question 13

To remain competitive in today's market, firms must produce a quality product and offer outstanding service at a reasonable price.

Accepted Answer

A) True 
 B)False

Question 14

Jorge, a recent college graduate, is thinking of investing in a home health care business. He believes this will be a profitable venture because of the increasing number of people in the U.S. that will be over 65 years of age in the near future and more likely to need this type of service. This accurately describes a demographic trend that will affect his business choice.

Accepted Answer

A) True 
 B)False

Question 15

Markus is in charge of production for a family-owned company that makes and sells kitchen utensils. He has stated that speed of delivery is the most important factor for success in the competitive environment. Which of the following would be the best response to Markus?

Accepted Answer

A)  You are right on target, Markus. Time is money. 
B)  You are the man, Markus. As long as our price is competitive, speedy delivery will win in today's changing marketplace. 
C)  Well Markus, speed isn't everything. What would exceed our customers' expectations? Some consumers may put more importance on high quality and/or lower prices. 
D)  Dude, you couldn't be more wrong. Quality is the name of the game. He who has the best product will win in the competitive environment. 
A)  You are right on target, Markus. Time is money. 
B)  You are the man, Markus. As long as our price is competitive, speedy delivery will win in today's changing marketplace. 
C)  Well Markus, speed isn't everything. What would exceed our customers' expectations? Some consumers may put more importance on high quality and/or lower prices. 
D)  Dude, you couldn't be more wrong. Quality is the name of the game. He who has the best product will win in the competitive environment.

Question 16

Technology refers to everything that makes business operations more effective, efficient, and productive.

Accepted Answer

A) True 
 B)False

Question 17

In countries where businesses are government owned,

Accepted Answer

A)  there is less incentive to work hard. 
B)  the right amount of each good is produced. 
C)  profits tend to be higher. 
D)  the quality of goods is high but profits are low. 
A)  there is less incentive to work hard. 
B)  the right amount of each good is produced. 
C)  profits tend to be higher. 
D)  the quality of goods is high but profits are low.

Question 18

People over 65 years old represent

Accepted Answer

A)  the unemployed generation. 
B)  the single-parent family generation. 
C)  a potentially lucrative market. 
D)  a group that has never contributed to Social Security. 
A)  the unemployed generation. 
B)  the single-parent family generation. 
C)  a potentially lucrative market. 
D)  a group that has never contributed to Social Security.

Question 19

Effectiveness means producing goods and services using the least amount of resources.

Accepted Answer

A) True 
 B)False

Question 20

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Accepted Answer

A) True 
 B)False

Exam 1: Taking Risks and Making Profits Within the Dynamic Business Environment

Outsourcing has caused complications in many states where jobs have been lost to overseas companies.

Aaron recently opened Twangy Tunes, a small recording studio in Nashville, TN. He probably could have set up shop in several major cities, but Nashville offered him the two most important factors, according to Peter Drucker, that would enhance the creation of wealth: labor and political freedom.

The new era of business is likely to be dominated by the

Which of the following is the most accurate statement about the impact of business on society?

Which of the following is the best example of a business whose goal is to earn a profit?

Demographic trends suggest that businesses will benefit from offering flexible work schedules, elder care, and child care to help employees balance the demands of job and family.

Producing a high-quality product will ensure success in the competitive environment.

The current Social Security system will ensure that the young people of today will have Social Security benefits in the future when they retire.

The statistical study of human population to learn its size, density, and characteristics is called

To implement a policy of empowerment, the organization will restructure so that:

According to the box, "Services Expand the Circular Economy," technology is helping turn products into services by

In countries where businesses cannot enter into binding contracts, business owners assume additional risk.

To remain competitive in today's market, firms must produce a quality product and offer outstanding service at a reasonable price.

Markus is in charge of production for a family-owned company that makes and sells kitchen utensils. He has stated that speed of delivery is the most important factor for success in the competitive environment. Which of the following would be the best response to Markus?

Technology refers to everything that makes business operations more effective, efficient, and productive.

In countries where businesses are government owned,

People over 65 years old represent

Effectiveness means producing goods and services using the least amount of resources.

New welfare rules have made it easier for single parents to remain at home with their young children without being required to seek employment.

Understanding Economics and How It Affects Business

Doing Business in Global Markets

Demanding Ethical and Socially Responsible Behavior

How to Form a Business

Entrepreneurship and Starting a Small Business

Management and Leadership

Structuring Organizations for Todays Challenges

Production and Operations Management

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Dealing With Employeemanagement Issues

Marketing: Helping Buyers Buy

Developing and Pricing Goods and Services

Distributing Products

Using Effective Promotions

Understanding Accounting and Financial Information

Financial Management

Using Securities Markets for Financing and Investing Opportunities

Money, Financial Institutions, and the Federal Reserve

Appendix: Working Within the Legal Environment

Appendix: Using Technology to Manage Information

Appendix: Managing Risk

Appendix: Managing Personal Finances

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